Trump names "strong rate cuts" for Fed Chair candidate, easing expectations rise, crypto market enters sensitive window

January 28 News, U.S. President Trump publicly stated that the next Federal Reserve Chair he is about to appoint will push for a “significant” interest rate cut. This statement quickly sparked market discussions about the independence of monetary policy and the future liquidity environment. As the U.S. economy is in a stage where inflation is receding and the cycle is in its latter phase, the direction of Federal Reserve interest rates has once again become one of the core variables in global asset pricing.

During a public event in Iowa, Trump revealed to supporters that the new Fed Chair candidate would be announced soon and explicitly linked it to a decline in borrowing costs. He emphasized that once the “right person” takes office, interest rates will see a noticeable reduction. The White House has not disclosed the specific list of candidates, and the Federal Reserve has not responded to related comments. According to institutional arrangements, monetary policy is still decided collectively by the Federal Open Market Committee.

This statement has caused divergence in financial markets. On one hand, long-term high interest rates have increased the costs of U.S. housing loans, consumer credit, and corporate financing, and the market has long been expecting a policy shift; on the other hand, it is uncommon for a sitting president to directly judge interest rate outcomes before appointment, leading to concerns that the Fed may face increased political pressure.

Against this backdrop, the sensitivity of risk assets has clearly increased. In the past 24 hours, the crypto market has shown divergence. Bitcoin remains around $89,100, with slight fluctuations; Ethereum is close to $3,900, continuing its short-term rebound; XRP fluctuates around $1.88, with a market cap maintaining in the hundreds of billions of dollars. The market has not shown a one-sided trend, reflecting that investors are still waiting for more explicit policy signals.

Currently, Trump’s statement about “interest rates will significantly decline” remains at the political level. The key factors that truly influence market expectations are still the policy stance of the future Fed Chair and the actual changes in data such as inflation, employment, and economic growth. Until the nomination is finalized, the expectation of easing is more of an emotional game rather than a certain path.